Australian Breastfeeding Association ABN Financial Report

Transcription

1 Australian Breastfeeding Association Financial Report

2 Contents Financial Report Page Directors' Report 1 Auditor's Independence Declaration 5 Statement of Profit or Loss and Other Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 22 Independent Auditor's Report 23

3 Directors' Report 30 June 2018 The Directors present their report on the Australian Breastfeeding Association (Association) for the financial year ended 30 June Directors The names of each person who has been a director during the year and to the date of this report are: Susan Day Karin Collinson (elected 24 November 2017) Grace Corbiau Margaret Grove (elected on 24 November 2017) Frieda Maher (elected on 24 November 2017) Steven Miller (elected on 24 November 2017) Louise Pennisi Scott Williams Sarah Lowndes (term ended on 30 June 2018) Judith Gifford (term ended on 24 November 2017) Robyn Hamilton (term ended on 24 November 2017) Deborah Holtham (term ended on 24 November 2017) Elizabeth Oei (term ended on 24 November 2017) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities All activities undertaken by the Association are determined by the objectives, priorities and measurable outcomes identified in the Strategic Plan and are fitting with the objects of the Association. Principal activities are determined in accordance with the strategic priorities, identified for each Key Result Area and include: Advocacy Breastfeeding Helpline - 24 hour mum-to-mum assistance and support for breastfeeding mothers Community Education - hospital visits, school visits, educational sessions Breastfeeding Education Classes - evidence based information for mums and dads to be Training and Education for Health Professionals, including national Health Professional Seminar Series Group meetings - planned, coordinated and facilitated by trained volunteers Nationally recognised training for ABA volunteers Breast pump hire Local events such as feed and change tents Breastfeeding Friendly Workplace Company Objectives and Strategy The Australian Breastfeeding Association is a voluntary organisation established for charitable purposes, originating in 1964 as the Nursing Mothers' Association. The Association is a company limited by guarantee. The replaceable rules in the Corporations Act do not apply to the Association. ABA is a registered training organisation. 1

4 Directors' Report 30 June 2018 Our Vision Breastfeeding is recognised as important by all Australians and is culturally normal. Our Mission As Australia's leading authority on breastfeeding, we support, educate and advocate for a breastfeeding inclusive society. Key Result Areas Advocacy Breastfeeding support Organisational viability Training, education and resources Public awareness and profile Measurement of Performance The Board of Directors and Chief Executive Officer monitor progress toward achieving the Association's objectives through reporting to an Operational Plan. This plan links activities and services to strategic priorities and desired outcomes of each Key Result Area and is reviewed at quarterly Board meetings. Association Financial Performance During Year The profit of the Association amounted to 78,420 (2017: 289,563). This result takes into account the operations of the Association (the Association National Head Office and its Branches). Mothers Direct was closed during the 2014/15 financial year and was wound up in the 2017/18 financial year. Information on Directors The names of the Directors in office at any time during or since the year end, with particulars of the qualifications, experience and special responsibilities of each Director, are: Director Qualifications Special Responsibilities Susan Day Adv Dip Management, IBCLC, Education, Diploma of Breastfeeding Management, Cert IV TAE Cert IV Breastfeeding(Councelling), Cert IV Breastfeeding (Community) President Director Karin Collinson (elected on 24 November 2017) Qualifications BCom, MAdvTax, CTA, Cert IV TAE, Cert IV Breastfeeding (Counselling), Cert IV Breastfeeding (Community) Special Responsibilities Honorary Treasurer (from 1 July 2018) Director Grace Corbiau Qualifications LLM (Public International Law), BA Hons (International Relations) Special Responsibilities Honorary Secretary (from 24 November 2017) 3

5 Directors' Report 30 June 2018 Information on Directors (continued) Director Margaret Grove (elected on 24 November 2017) Qualifications B.A. (Hons), Dip Ed, M.A., Certificate IV in Breastfeeding Education, Certificate IV in Training and Assessment Director Frieda Maher (elected on 24 November 2017) Qualifications BSc (Business Information Technology), MBA (Executive) TAE Cert IV Breastfeeding (Counselling), Cert IV Breastfeeding (Community) Director Steve Miller (elected on 24 November 2017) Qualifications BCompSc (Hons), MBA (executive) Director Qualifications Special Responsibilities Louise Pennisi LLB/BA (Italian & Japanese) LLM TEP GAICD, GIA (Cert) Vice President Director Qualifications Scott Williams Exec MBA, Masters Advanced Practice Nursing, BA Paediatric Nursing, GAICD Director Sarah Lowndes (term ended on 30 June 2018) Qualifications BEc, MArts (Public Policy and Management), GAICD Special Responsibilities Honorary Treasurer (term ended on 30 June 2018) Director Judith Gifford (term ended on 24 November 2017) Qualifications BA (Hons) Dip Ed, Cert 1V Breastfeeding (Counselling), Cert 1V Breastfeeding (Community) Director Robyn Hamilton (term ended on 24 November 2017) Qualifications M App Sc (Library & Info Mgt), Grad Dip Lib Sc, BA (Hons) Musicology, Cert IV AWT, Cert IV Breastfeeding (Counselling), Cert IV Breastfeeding (Community) Special Responsibilities Honorary Secretary (until 24 November 2017) Director Deborah Holtham (term ended on 24 November 2017) Qualifications MBA (Tech Mgt), BEng (Elec) Director Elizabeth Oei (term ended on 24 November 2017) Qualifications BA, Dip Ed, Breastfeeding Counsellor 3

6 Directors' Report 30 June 2018 Meetings of Directors During the financial year, 10 meetings of Directors were held. Attendances by each Director during the year were as follows: Directors' Meetings Number eligible to attend Number attended S Day K Collinson (elected on 24 November 2017) 7 7 G Corbiau 10 5 L Pennisi 10 9 S Williams 10 8 M Grove (elected on 24 November 2017) 7 4 F Maher (elected on 24 November 2017) 7 7 S Miller (elected on 24 November 2017) 7 6 S Lowndes (term ended on 30 June 2018) J Gifford (term ended on 24 November 2017) 3 3 R Hamilton (term ended on 24 November 2017) 3 3 D Holtham (term ended on 24 November 2017) 3 3 E Oei (term ended on 24 November 2017) 3 3 Membership The Association has only 1 class of membership. Each member of the Association undertakes to contribute to the property of the Association in the event of it being wound up while the person is a member or within one year after the person ceases to be a member for payment of the debts and liabilities of the Association contracted before the person ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories amongst themselves, such amounts as may be required not exceeding 20. At 30 June 2018, the total amount members of the Association are liable to contribute if the Association is wound up is 35,320 (2017: 34,800). Auditor's independence declaration A copy of the Auditors' Independence Declaration as required under section of the Australian Charities and Not-for-profits Commission Act 2012 is set out on page 5 of the financial report. Signed in accordance with a resolution of the Board of Directors: Director: Susan Day President Director: Karin Collinson Honorary Treasurer Dated this 18 th day of October

7 Auditor s Independence Declaration to the directors of Australian Breastfeeding Association I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018, there have been: (i) (ii) No contraventions of the auditor independence requirements as set out in the Australian Charities and Notfor-profits Commission Act 2012 in relation to the audit, and No contraventions of any applicable code of professional conduct in relation to the audit. ShineWing Australia Chartered Accountants Hayley Underwood Partner Melbourne, 18 October ShineWing Australia ABN Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited members in principal cities throughout the world.

8 Statement of Profit or Loss and Other Comprehensive Income Revenue 2(a) 3,345,559 3,299,912 Cost of sales Note (49,072) (35,728) Employee expenses (1,557,066) (1,409,956) Depreciation and amortisation expense (64,164) (49,128) Occupancy expenses (139,220) (120,194) Other expenses 2(b) (1,457,617) (1,395,343) Surplus before income tax 78, ,563 Income tax expense 1(c) - - Surplus for the year 78, ,563 Other comprehensive income - - Total comprehensive income for the year 78, ,563 The accompanying notes form part of these financial statements. 6

9 Statement of Financial Position As At 30 June 2018 Note ASSETS CURRENT ASSETS Cash and cash equivalents 4 1,658,108 1,815,593 Trade and other receivables 5 150, ,360 Inventories 6 58,803 71,867 Prepayments 7 75,230 29,426 TOTAL CURRENT ASSETS NON-CURRENT ASSETS 1,943,114 2,040,246 Intangible assets 8 56,242 53,266 Plant and equipment 9 69,854 52,350 TOTAL NON-CURRENT ASSETS TOTAL ASSETS 126, ,616 2,069,210 2,145,862 LIABILITIES CURRENT LIABILITIES Trade and other payables , ,086 Borrowings 11 7,319 - Provisions , ,405 Other liabilities , ,290 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES 1,032,507 1,213,781 Borrowings 11 12,199 - Long-term provisions 12 5,592 14,812 Other liabilities 13 35,112 11,889 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 52,903 26,701 1,085,410 1,240, , ,380 EQUITY Retained earnings 983, ,380 Total equity 983, ,380 The accompanying notes form part of these financial statements. 7

10 Statement of Changes in Equity Retained Earnings Total Equity Balance at 30 June , ,817 Total comprehensive profit for the year 289, ,563 Balance at 30 June , ,380 Total comprehensive profit for the year 78,420 78,420 Balance at 30 June , ,800 The accompanying notes form part of these financial statements. 8

11 Statement of Cash Flows Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from members and customers 1,670,130 1,791,980 Grant receipts 1,668,026 1,648,925 Interest received 13,660 14,282 Payments to suppliers and employees (3,444,177) (3,282,660) Net cash (used in)/provided by operating activities 14 (92,361) 172,527 CASH FLOWS FROM INVESTING ACTIVITIES: Payment for intangible asset (41,280) (16,545) Payment for plant and equipment (21,127) (32,733) Proceeds for other non-current assets - (12,397) Net cash provided by/(used in) investing activities (62,407) (61,675) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds/(Repayments) from related party payables - (2,784) Repayment of borrowings (2,532) - Borrowing costs paid Net cash used in financing activities (185) - (2,717) (2,784) Net (decrease)/increase in cash and cash equivalents held (157,485) 108,068 Cash and cash equivalents at beginning of year 1,815,593 1,707,525 Cash and cash equivalents at end of financial year 4 1,658,108 1,815,593 The accompanying notes form part of these financial statements. 9

12 Notes to the Financial Statements The financial report covers Australian Breastfeeding Association ('the Association ). Australian Breastfeeding Association is a not for profit company limited by guarantee, incorporated and domiciled in Australia. The financial report was authorised for issue by the Directors as at date of the Director s Report. Basis of Preparation The Directors have prepared the financial statements on the basis that the Association is a non reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not-for-profits Commission Act The Association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not-for-profits Commission Act 2012 and the significant accounting policies disclosed below, which the Directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with those of previous periods unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accrual basis and are based on historical costs unless otherwise stated in the notes. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial statements have been rounded to the nearest dollar. 1 Summary of Significant Accounting Policies (a) Principles of Consolidation The financial statements include the financial position and performance of head office and branches from the date on which control is obtained until the date that control is lost. Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between branches and/or head office in the Association have been eliminated in full for the purpose of these financial statements. Appropriate adjustments have been made to the Association s financial position, performance and cash flows where the accounting policies used by that branch were different from those adopted by the Association. All branches have a June financial year end. Separate financial statements for Australian Breastfeeding Association as an individual entity are no longer presented as a consequence of a change to the Corporations Act The financial statements of the Association do not include the financial position and performance of the Groups and Regions of the Association. During the 2017/18 financial year, The Directors have invested in a more advanced accounting software and implemented a reporting process and system to bring the financial positions of the Groups and Regions into the financial statements for the 2018/19 financial year. This will have an impact on the Association s financial statements, broadly expected to result in an estimated increase in net current assets of more than 500,

13 Notes to the Financial Statements 1 Summary of Significant Accounting Policies (continued) (b) Revenue recognition Revenue from the sale of goods is recognised when the Association has transferred to the buyer the significant risks and rewards of ownership of the goods. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. Rendering of Services Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised that are recoverable. Revenue from members' subscriptions is recognised on a time proportionate basis that takes into account the period of the subscription. Donations are recognised as revenue when received. Grant revenue Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the Association obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the Association and the amount of the grant can be measured reliably. When grant revenue is received whereby the Association incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Australian Breastfeeding Association receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income. (c) Income Tax The Association is exempt from income tax in accordance with Subdivision 50-A (ITAA 1997). (d) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. (e) Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. 11

14 Notes to the Financial Statements 1 Summary of Significant Accounting Policies (continued) (f) Loans and Receivables Trade receivables, loans, and other receivables are recorded at amortised cost less impairment. (g) Inventories Inventories are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand by the method most appropriate to each particular class of inventory, with the majority being valued on a first in first out basis. Net realisable value represents the estimated selling price and costs to be incurred in marketing, selling and distribution. (h) Software Software are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their estimated useful lives. Amortisation shall begin when the software are available for use; that is when they are in the condition of being capable of being operated by management. The estimated useful life and amortisation method is reviewed at the end of each annual reporting period, with any changes in these accounting estimates being accounted for on a prospective basis. Amortisation is calculated on a straight-line basis over periods generally ranging from 3 to 5 years. (i) Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from those assets. Depreciation The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Plant and Equipment 20-40% (j) Impairment of Assets At each reporting date, the entity reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use. In respect of not-for-profit entities, where the future economic benefits of an asset are not primarily dependent on the assets ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciable replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The current replacement cost of an asset is its cost measured by reference to the lowest cost at which the gross future economic benefits of that asset could currently be obtained in the normal course of business. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately. 12

15 Notes to the Financial Statements 1 Summary of Significant Accounting Policies (continued) (j) Impairment of Assets (continued) Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in profit or loss immediately. (k) Payables Trade payables and other accounts payable are recognised when the Association becomes obliged to make future payments resulting from the purchase of goods and services. (l) Employee Benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled wholly within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits which are not expected to be settled wholly within 12 months are measured as the present value of the estimated future cash outflows to be made by the Association in respect of services provided by employees up to reporting date. (m) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (n) Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year. When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed. Comparatives are consistent with prior years, unless otherwise stated. (o) Critical Accounting Estimates and Judgements The Directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association. 13

16 Notes to the Financial Statements 1 Summary of Significant Accounting Policies (continued) (p) New Accounting Standards for Application in Future Periods The AASB has issued a number of new and amended Accounting Standards that have mandatory application dates for future reporting periods, some of which are relevant to the company. The Association has decided not to early adopt any of the new and amended pronouncements. The Association s assessment of the new and amended pronouncements that are relevant to the company but applicable in future reporting periods is set out below: AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 2018). The Standard will be applicable retrospectively and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments, and simplified requirements for hedge accounting. The key changes that may affect the Association on initial application include certain simplifications to the classification of financial assets, simplifications to the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Although the directors anticipate that the adoption of AASB 9 may have an impact on the Association s financial instruments, it is impracticable at this stage to provide a reasonable estimate of such impact. AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019). When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases. The main changes introduced by the new Standard include: recognition of a right to use asset and liability for all leases (excluding short term leases with less than 12 months of tenure and leases relating to low value assets); depreciation of right to use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components; variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability using the index or rate at the commencement date; by applying a practical expedient, a lessee is permitted to elect not to separate non lease components and instead account for all components as a lease; and additional disclosure requirements. The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application. Although the directors anticipate that the adoption of AASB 16 will impact the Association s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact. 14

17 Notes to the Financial Statements 1 Summary of Significant Accounting Policies (continued) (p) New Accounting Standards for Application in Future Periods (continued) AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods commencing on or after 1 January 2018). When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers. The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five step process: identify the contract(s) with a customer; identify the performance obligations in the contract(s); determine the transaction price; allocate the transaction price to the performance obligations in the contract(s); and recognise revenue when (or as) the performance obligations are satisfied. This Standard will require retrospective restatement, as well as enhanced disclosures regarding revenue. Although the directors anticipate that the adoption of AASB 15 may have an impact on the Association s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact. AASB 1058: Income of Not for Profit Entities (applicable to annual reporting periods beginning on or after 1st January 2019) AASB 1058 applies to transactions where the consideration to purchase an asset is significantly less than its fair value in order to support the entity to further its objectives. It also applies to volunteer services. The following are the key requirements in this standard: 1. Income arising from the excess of the initial carrying amount of an asset over the related contributions by owners, increases in liabilities, decreases in assets, and revenue should be immediately recognised in profit or loss. For this purpose assets, liabilities and revenue are to be measured in accordance with the applicable standard; 2. A liability is recognised for the excess of the initial carrying amount of a financial asset (received in a transfer to enable the entity to acquire or construct a recognisable non financial asset that is to be controlled by the entity) over any related amounts recognised in accordance with other standards. This liability has to be amortised to profit or loss as the entity satisfies its obligations under the transfer; and 3. An entity may elect to recognise volunteer services or a class of volunteer services as an accounting policy choice if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated. Recognised volunteer services shall be measured at fair value and any excess over the related amounts (such as contribution by owners or revenue) should be immediately recognised in profit or loss. Although the directors anticipate that the adoption of AASB 1058 may have an impact on the Association s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact. 15

18 Notes to the Financial Statements 2 Result for the Year (a) Revenue and Other Income Revenue Grant income 1,599,566 1,458,383 Subscription 544, ,486 Workshops and seminars 323, ,616 ABA training including branch conferences 154, ,274 Raffle 81,811 96,093 Endorsement, sponsorship and advertising 120, ,370 Donations 103, ,649 Breastfeeding Friendly Workshops 119, ,846 Equipment hire 58, ,995 Shop sales 13,795 22,045 Other revenue 213,842 63,873 3,331,899 3,285,630 Other income Interest income 13,660 14,282 13,660 14,282 Total revenue 3,345,559 3,299,912 (b) Other Expenses Training ABA volunteers 221, ,397 ABA training expenses, including branch conferences 91,063 75,646 Membership services 36,981 68,739 Membership offers and promotion 42,910 46,365 Raffle expenses 45,660 48,131 Workshops and seminars offered outside ABA 189, ,395 National Breastfeeding Helpline 418, ,706 Breastfeeding Friendly Workplaces 17,264 19,196 Other funded project expenses 75,308 28,401 Office administration and overheads 86, ,601 Bad and doubtful debts expenses (50,000) 47,640 Reversal of onerous lease expense - (330,706) Loss on sale of assets - 41,881 Information and communication technology 127,012 57,296 Other expenses 154, ,655 Total other expenses 1,457,617 1,395,343 16

19 Notes to the Financial Statements 3 Remuneration of Auditors Audit of the financial report 37,900 29,500 Audit of grant expenditure and raffle income 7,350 4,500 Other services 3,600 3,500 48,850 37,500 4 Cash and Cash Equivalents Cash on hand Cash at bank 1,657,918 1,815,058 1,658,108 1,815,593 5 Trade and Other Receivables CURRENT Trade receivables 123, ,220 Allowance for doubtful debts - (50,000) Other receivables 4,688 5,385 Goods and services receivable (GST) 23,253 9, , ,360 6 Inventories CURRENT Finished goods 58,803 71,867 7 Other Assets CURRENT Prepayments 75,230 29,426 8 Intangible Assets Software database: At cost 345, ,976 Amortisation (289,015) (250,710) 56,242 53,266 17

20 Notes to the Financial Statements 9 Property, Plant and Equipment PLANT AND EQUIPMENT At cost 496, ,827 Accumulated depreciation (426,337) (400,477) 69,854 52, Trade and Other Payables CURRENT Trade payables 138, ,852 Other payables and accruals 220, , , , Borrowings CURRENT Lease liabilities 7,319 - NON-CURRENT Lease liabilities 12, Provisions CURRENT Employee provisions 184, ,405 NON-CURRENT Employee provisions 5,592 14, Other Liabilities CURRENT Deferred government grants 78, ,185 Deferred income, subscriptions 282, ,928 Other income received in advance 120, , , ,290 NON-CURRENT Deferred income, subscriptions 35,112 - Related party payables - 11,889 35,112 11,889 18

21 Notes to the Financial Statements 14 Cash Flow Information (a) Reconciliation of surplus for the year to net cash flows from operating activities Surplus for the year 78, ,563 Depreciation & amortisation 64,164 49,128 Bad and doubtful debts (50,000) 47,640 Loss on sale of assets - 41,880 Reversal of onerous leases - (330,706) Changes in net assets and liabilities: (Increase)/decrease in assets: Current receivables 22,387 (104,637) Current inventories 13,064 3,587 Other current assets (45,804) (3,306) Increase/(decrease) in liabilities: Current payables 16, ,499 Provisions 2,783 (28,788) Other liabilities (194,063) 67,667 Net cash (outflow)/inflow from operating activities (92,361) 172,527 (b) (c) There are no credit standby arrangements with banks. There were no non-cash financing or investing activities during the year. 15 Capital and Leasing Commitments Non-cancellable operating lease payments Future operating lease rentals of premises and photocopier not provided for in the accounts, and payable: - not later than one year 99,652 78,826 - between one year and five years 392, ,098 - later than five years , , ,733 The property lease is a non-cancellable lease with a four-year term, with rent payable monthly in advance and will be increased by 3.5% per annum. An option exists to renew the lease at the end of the four-year term for an additional term of four years. The photocopiers are on a fiver-year lease term. 19

22 Notes to the Financial Statements 16 Contingent Liabilities Guarantees in respect of the Association s premises rental agreement, secured by a term deposit - face value 10,627 23, Members' Guarantee The Association is incorporated as a company limited by guarantee and not having share capital. Each member of the Association undertakes to contribute to the property of the Association in the event of it being wound up while the person is a member or within one year after the person ceases to be a member for payment of the debts and liabilities of the Association contracted before the person ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories amongst themselves, such amounts as may be required not exceeding 20. As at 30 June 2018 there were 1,766 members (2017: 1,740). 18 Events Occurring After the Reporting Date No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years. 19 Company Details The registered office of the Association and the principal place of business is: Suite 2, Level 3, 150 Albert Road South Melbourne VIC

23 Directors' Declaration The directors have determined that the Association is not a reporting entity and that this special purpose financial statements should be prepared in accordance with the accounting policies described in Note 1 to the financial statements. The Directors of the Association declare that: 1. The financial statements, comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, and accompanying notes of the Association as set out on pages 6 to 21, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and: (a) comply with Accounting Standards as stated in Note 1 to the financial statements and the Australian Charities and Not-for-profits Commission Regulation 2013; and (b) give a true and fair view of the Association's financial position as at 30 June 2018 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements. 2. In the Directors' opinion, there are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by: Director Susan Day President Director Karin Collinson Honorary Treasurer Dated this 18 th day of October

24 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF AUSTRALIAN BREASTFEEDING ASSOCIATION Qualified Opinion We have audited the financial report of Australian Breastfeeding Association ( the Company ), which comprises the statement of financial position as at 30 June 2018, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors declaration. In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial report of the Company is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: a) giving a true and fair view of the Company s financial position as at 30 June 2018 and of its financial performance and cash flows for the year then ended; and b) complying with Australian Accounting Standards to the extent described in Note 1 to the financial report and Division 60 of the Australian Charities and Not-for-profits Commission Regulation Basis for Qualified Opinion As disclosed in note 1(a) to the financial statements, the financial performance and financial position of the Company do not include the assets and liabilities and operating results of the Groups and Regions that operate throughout Australia. During the 2017/18 financial year, the Directors have invested in a more advanced accounting software and implemented a reporting process and system to bring the financial positions of the Groups and Regions into the financial statements for the 2018/19 financial year. The Groups and Regions should form part of the Company s performance and position. Accordingly our opinion is qualified in respect to this limitation of scope. We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants ( the Code ) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by Division 60 of the Australian Charities and Not-forprofits Commission Act 2012, which has been given to the directors of the Company, would be in the same terms if given as at the time of this auditor s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. 23 ShineWing Australia ABN Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited members in principal cities throughout the world.

25 Emphasis of Matter Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Information Other than the Financial Report and Auditor s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Company s financial report for the year ended 30 June 2018, but does not include the financial report and our auditor s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Regulations 2013 and the Australian Charities and Not-for-profits Commission Act 2012 and is appropriate to meet the needs of the members. The directors responsibility also includes such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the special purpose financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 24

26 We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. We conclude on the appropriateness of the director s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them, all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. ShineWing Australia Chartered Accountants Hayley Underwood Partner Melbourne, 25 October